Negotiating a Star Player’s Pay
Assume that you are the manager of a professional soccer team and that you are negotiating a contract with your team’s star player. You can afford to pay the player only 1.5 million a year over three years (the remaining life of his contract). The player’s agent insists that the player will not accept a contract with a nominal value less that 5 million. Can you meet the agent’s demand without relaxing you financial constraint on how much you can afford to pay him?